Going through a divorce or separation can be an emotionally and financially challenging time.

It’s important to remember that pensions are a significant part of your financial future and must not be overlooked. In many cases, pensions are among the largest assets to consider during the division of property.

Seeking legal and financial advice is essential to understand your rights and ensure fair division. This process might include valuing the pension, considering whether to offset it against other assets, or sharing it directly. Taking the time to carefully review pension benefits, especially when considering the impact on future retirement plans, can bring a sense of security and confidence as you navigate this major life change.

One key tool to ensure fairness during this process is a Pension Adjustment Order. This court order allows for the pension benefits of one spouse to be legally shared with the other, reflecting the joint contributions to the household over the years. It helps to make sure that the division of pension benefits is done correctly and equitably, safeguarding your financial future.

What Is a Pension Adjustment Order?

A Pension Adjustment Order is a court order made under the Family Law Act, which directs that a portion of one party’s pension benefits be assigned to the other following a divorce, judicial separation, or civil partnership dissolution.

It can apply to:

  • Retirement benefits (e.g., lump sums or pension income)
  • Contingent benefits (e.g., death-in-service or widow’s pensions)

A PAO ensures that pensions — often one of the most valuable marital assets — are taken into account when dividing financial resources.

Pensions are complex and long-term in nature. It’s important to consider:

  • Whether the PAO applies to benefits already built up or to future service as well
  • How soon the person receiving the benefit (the beneficiary) can access the pension

PAOs work differently depending on whether the pension is:

  • A Defined Benefit (DB) scheme (common in the public sector)
  • A Defined Contribution (DC) scheme (common in the private sector)
    Each scheme has its own rules, and PAOs must be drafted carefully to reflect them.

The beneficiary of a PAO can either:

  • Leave their share within the original scheme, to be paid at retirement age
  • Transfer it to another pension arrangement, subject to the scheme’s rules and Revenue guidelines

This is a key decision that should be made with professional advice.

Teachers, Nurses, Gardaí, and other public sector workers are part of unfunded public pension schemes, which operate under different rules from private pensions.

Applying a PAO in these cases requires specific technical knowledge.

Why Professional Advice on PAOs Is Essential

Our team has extensive experience in dealing with PAOs across both public and private sector pensions.

 

We work with individuals and legal professionals to:

  • Review existing pension benefits
  • Advise on suitable structures for PAOs
  • Liaise with pension scheme administrators
  • Help beneficiaries understand their options

Once your PAO is approved by the courts, we can then provide you with expert advice on what you should do with the proceeds — whether that means transferring them, drawing them down at retirement, or investing for long-term security.

In situations where you’re eligible to transfer the proceeds of the PAO into a pension in your own name, we can assist you in setting that up and ensuring it’s structured in a way that works best for your retirement goals.

Get in Touch

If you’re going through a separation or divorce — or need help understanding your entitlements under a Pension Adjustment Order — don’t leave it to chance.

Contact us today for expert, confidential guidance tailored to your personal circumstances.